Link: https://apnews.com/article/anthropic-pentagon-ai-hegseth-dario-amodei-b72d1894bc842d9acf026df3867bee8a

The Trump administration on Friday ordered all U.S. agencies to stop using Anthropic’s AI technology and imposed other major penalties, culminating an unusually public clash between the government and the company over AI safeguards.

Defense Secretary Pete Hegseth said he was designating Anthropic as a supply chain risk, a move that could prevent U.S. military vendors from working with the company.

Hegseth’s remarks, delivered in a social media post, came shortly after the Pentagon’s deadline for Anthropic to allow unrestricted military use of its AI technology or face consequences — and nearly 24 hours after CEO Dario Amodei said his company “cannot in good conscience accede” to the Defense Department’s demands.

The supply chain risk designation and threats of imprisonment are completely insane. It's effectively the corporate death penalty for Anthropic. I expect the stock market would be crashing right now if it were open.